Simeon Gutman, an analyst from Morgan Stanley, maintained the Buy rating on Walmart. The associated price target remains the same with $115.00.
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Simeon Gutman has given his Buy rating due to a combination of factors related to Walmart’s strategic positioning and growth potential. Despite a slight decline in Walmart+ membership numbers, the overall trend remains positive, with a long-term growth trajectory that continues to be promising. Gutman notes that the membership decline is within normal sampling variation and is not a cause for immediate concern.
Walmart’s strategy to enhance its eCommerce ecosystem by expanding delivery reach and improving delivery speed is expected to bolster profitability. The company’s ability to leverage its grocery leadership, capture a larger share of higher-income consumers’ spending, and generate consistent income through retail media and data analysis are key factors supporting the Buy rating. These strategic initiatives position Walmart to strengthen its market presence and drive future earnings growth.
In another report released on October 29, RBC Capital also maintained a Buy rating on the stock with a $116.00 price target.
Based on the recent corporate insider activity of 219 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMT in relation to earlier this year.